The network automation market is set to grow from its current market value of more than $5 billion to over $30 billion by 2028, as reported in the latest study by Global Market Insights, Inc.
The network automation industry is speculated to exhibit robust progress by 2028, owing to widespread adoption of cloud-based services across key regions.
The COVID-19 pandemic has significantly impacted the industry landscape with the advent of completely automated remote offices, increasing emphasis on cloud strategies, and the necessity to develop new communications software tools. This has led to an influx of investment from network automation solution vendors, which has accelerated market growth in recent years.
The network automation market has been segmented based on application, component, deployment model, type, network infrastructure, and region.
In terms of component, the market has further been classified into service and software. Under services, the market has been divided into managed and professional.
The professional segment accounted for a substantial market share of around 70% in 2021 and is slated to grow at a sturdy pace through the analysis period. Professional services enable enterprises to invest their critical resources in their core areas that directly generate revenue, which is set to boost segmental growth over the assessment timeline.
The managed segment is expected to witness staggering expansion, progressing at a CAGR of approximately 40% over the forecast timeframe. This is due to the increasing number of SMEs offering innovative solutions at affordable prices.
With respect to the type, the network automation market has been categorized into wireless networks, local area network, cloud networks, wide area network, and data center networks. The wide area network (WAN) sub-segment is speculated to grow at a 20% CAGR through the estimated period. WAN provides the most extensive geographical coverage to deploy the latest technologies in existing networks, which is likely to fuel product adoption.
The data center networks sub-segment is foreseen to reach a significant valuation by 2028, registering a CAGR of more than 35% through the review timeframe. This growth is attributed to the prevalent adoption of centralized network provisioning and integrated enterprise management.
Based on application, the market has been bifurcated into retail, manufacturing, BFSI, telecom & IT, energy & utilities, healthcare, and others.
The network automation market from the energy & utilities sub-segment is anticipated to grow at a 30% CAGR over the stipulated period on account of mounting demand for digitalization and adoption of the smart grid technology.